DETAILED PROJECT REPORT ON DIGESTER BLOW ...sameeeksha.org/pdf/dpr/Muzaffernagar_paper_cluster/...DIGESTER BLOW HEAT RECOVERY (MUZAFFARNAGAR PAPER CLUSTER) Bureau of Energy Efficiency

DETAILED PROJECT REPORT

ON

DIGESTER BLOW HEAT RECOVERY

(MUZAFFARNAGAR PAPER CLUSTER)

Bureau of Energy Efficiency

Prepared By

Reviewed By

DIGESTER BLOW HEAT RECOVERY

MUZAFFARNAGAR PAPER CLUSTER

BEE, 2010

Detailed Project Report on Digester Blow Heat Recovery

Paper SME Cluster, Muzaffarnagar, Uttar Pradesh (India)

New Delhi: Bureau of Energy Efficiency;

Detail Project Report No.: MZN/PPR/BEI/01

For more information

Bureau of Energy Efficiency (BEE) Telephone +91-11-26179699

(Ministry of Power, Government of India) Fax +91-11-26178352

4th Floor, Sewa Bhawan Websites: www.bee-india.nic.in

R. K. Puram, New Delhi – 110066 Email: [email protected]/ [email protected]

http://www.bee-india.nic.in/

mailto:[email protected]/

mailto:[email protected]

Acknowledgement

We are sincerely thankful to the Bureau of Energy Efficiency, Ministry of Power, for giving us

the opportunity to implement the „BEE SME project in Muzaffarnagar Paper Mills cluster‟. We

express our sincere gratitude to all concerned officials for their support and guidance during

the conduct of this exercise.

Shri Dr. Ajay Mathur, Director General

Smt Abha Shukla, Secretary

Shri Jitendra Sood, Energy Economist

Shri Pawan Kumar Tiwari, Advisor, SME

Shri Rajeev Yadav, Project Economist, BEE

Deloitte Touche Tohmatsu India Pvt. Ltd. is also thankful to all the Muzaffarnagar Paper Mills

owners and their employees for their valuable inputs, co-operation, support for showing

interest to conduct energy use and technology audit studies and facilitating the

implementation of BEE SME program in Muzaffarnagar Paper Mills cluster.

Deloitte is also thankful to Shri Pankaj Agarwal for providing continued help, co-ordination and

cooperation throughout the study.

Deloitte Touche Tohmatsu India Pvt. Ltd. Gurgaon

Contents

List of Annexure i

List of Tables i

List of Figures ii

List of Abbreviation ii

Executive summary iii

About BEE’S SME program v

1 INTRODUCTION........................................................................................................... 1

1.1 Brief Introduction about cluster ...................................................................................... 1

1.2 Energy performance in existing system ....................................................................... 10

1.2.1 Fuel consumption ........................................................................................................ 10

1.2.2 Specific energy consumption ...................................................................................... 11

1.3 Existing technology/equipment .................................................................................... 12

1.3.1 Description of existing technology ............................................................................... 12

1.3.2 Role in process ........................................................................................................... 13

1.4 Baseline establishment for existing technology ........................................................... 13

1.4.1 Design and operating parameters ............................................................................... 13

1.4.2 Operating efficiency analysis ....................................................................................... 14

1.5 Barriers in adoption of proposed equipment ................................................................ 14

1.5.1 Technological barrier ................................................................................................... 14

1.5.2 Financial barrier .......................................................................................................... 15

1.5.3 Skilled manpower ........................................................................................................ 15

1.5.4 Other barrier (If any) .................................................................................................... 15

2. PROPOSED EQUIPMENT FOR ENERGY EFFICENCY IMPROVEMENT ................. 16

2.1 Description of proposed equipment ............................................................................. 16

2.1.1 Detailed of proposed equipment .................................................................................. 16

2.1.2 Equipment/technology specification ............................................................................ 16

2.1.3 Integration with existing equipment ............................................................................. 16

2.1.4 Superiority over existing system .................................................................................. 16

2.1.5 Source of equipment ................................................................................................... 17

2.1.6 Availability of technology/equipment ........................................................................... 17

2.1.7 Service providers ........................................................................................................ 17

2.1.8 Process down time ...................................................................................................... 17

2.2 Life cycle assessment and risks analysis .................................................................... 17

3. ECONOMIC BENEFITS FROM PROPOSED TECHNOLOGY .................................... 18

3.1 Technical benefit ......................................................................................................... 18

3.1.1 Fuel saving.................................................................................................................. 18

3.1.2 Electricity saving ......................................................................................................... 18

3.1.3 Improvement in product quality ................................................................................... 18

3.1.4 Increase in production ................................................................................................. 18

3.1.5 Reduction in raw material ............................................................................................ 18

3.1.6 Reduction in other losses ............................................................................................ 18

3.2 Monetary benefits........................................................................................................ 18

3.3 Social benefits ............................................................................................................. 19

3.3.1 Improvement in working environment .......................................................................... 19

3.3.2 Improvement in workers skill ....................................................................................... 19

3.4 Environmental benefits ................................................................................................ 19

3.4.1 Reduction in effluent generation .................................................................................. 19

3.4.2 Reduction in GHG emission ........................................................................................ 19

3.4.3 Reduction in other emissions like SOX ........................................................................ 19

4 INSTALLATION OF PROPOSED EQUIPMENT ......................................................... 20

4.1 Cost of project ............................................................................................................. 20

4.1.1 Equipment cost ........................................................................................................... 20

4.1.2 Erection, commissioning and other misc. cost ............................................................. 20

4.2 Arrangements of funds ................................................................................................ 20

4.2.1 Entrepreneur‟s contribution ......................................................................................... 20

4.2.2 Loan amount. .............................................................................................................. 20

4.2.3 Terms & conditions of loan .......................................................................................... 20

4.3 Financial indicators ..................................................................................................... 21

4.3.1 Cash flow analysis ...................................................................................................... 21

4.3.2 Simple payback period ................................................................................................ 21

4.3.3 Net Present Value (NPV) ............................................................................................ 21

4.3.4 Internal rate of return (IRR) ......................................................................................... 21

4.3.5 Return on investment (ROI) ........................................................................................ 21

4.4 Sensitivity analysis ...................................................................................................... 22

4.5 Procurement and implementation schedule................................................................. 22

i

List of Annexure

Annexure -1: Energy audit data used for baseline establishment ......................................... 23

Annexure -2: Detailed technology assessment report .......................................................... 24

Annexure -3: Detailed financial analysis ............................................................................... 25

Annexure -4: Procurement and implementation schedules .................................................. 29

Annexure -5: Details of technology service providers ........................................................... 30

Annexure–6: Quotations or Techno-commercial bids for new technology/equipment ........... 31

List of Table

Table 1 Details of annual energy consumption .......................................................................... 2

Table 2 Classification of Units ................................................................................................... 2

Table 3 Details of annual energy consumption .......................................................................... 4

Table 4 Annual Energy consumption in different capacities of Agro Waste based units .......... 10

Table 5 Annual Energy consumption in different capacities of Waste Paper based units ........ 10

Table 6 Specific energy consumption ...................................................................................... 11

Table 7 Equipment wise specific energy consumption ............................................................. 11

Table 8 Energy Charges ......................................................................................................... 13

Table 9 Energy and monetary benefit ...................................................................................... 18

Table 10 Details of proposed technology project cost .............................................................. 20

Table 11 Financial indicators of proposed technology/equipment ............................................ 21

Table 12 Sensitivity analysis at different scenarios .................................................................. 22

ii

List of Figures

Figure 1 Classification of Units - Capacity ................................................................................. 2

Figure 2 Classification of Units – Raw Material .......................................................................... 3

Figure 3 Classification of Units - Product ................................................................................... 3

Figure 4 Agro-residue Chemical Pulping Process ..................................................................... 6

Figure 5 Process flow diagram .................................................................................................. 9

Figure 6 Present Digester Blow Heat Recovery System .......................................................... 12

Figure 7 Proposed Digester Blow Heat Recovery System ....................................................... 14

List of Abbreviation

BEE Bureau of Energy Efficiency

MSME Micro Small and Medium Enterprises

DPR Detailed Project Report

GHG Green House Gases

CDM Clean Development Mechanism

DSCR Debt Service Coverage Ratio

NPV Net Present Value

IRR Internal Rate of Return

ROI Return on Investment

MoMSME Ministry of Micro Small and Medium Enterprises

SIDBI Small Industrial Development Bank of India

iii

EXECUTIVE SUMMARY

Deloitte Touche Tohmatsu India Private Limited is executing BEE-SME program in

Muzaffarnagar Paper Cluster, supported by Bureau of Energy Efficiency (BEE) with an overall

objective of improving the energy efficiency in cluster units.

Muzaffarnagar cluster is one of the largest SME paper clusters in India; accordingly this

cluster was chosen for energy efficiency improvements by implementing energy efficient

measures/technologies, so as to facilitate maximum replication in other paper units/clusters in

India. The main energy forms used in the cluster units are grid electricity, coal and biomass.

Rice husk, pith and bagasse are the major biomass used in the cluster. In few mills wood

chips are also used as a supplementary fuel.

Energy consumption (thermal energy & electrical energy) in Paper unit depends on capacity

of unit and raw material used in the unit. The paper mills in Muzaffarnagar cluster have

energy saving opportunities both in the process and utility side. During the energy audit

carried out, it was observed that a few paper mills were performing fairly well in terms of

energy efficiency. These mills have adopted the latest and energy efficient technologies

available both on the process and utility side. Still there are fairly large numbers of unit that

have potential to improve energy efficiency.

The Agro residue based paper mills use digester to cook the raw material. These digesters

are generally 14 feet to 16 feet in diameter. Bagasse and wheat straw are generally used as

raw material after de-pithing and/or cutting. Generally the steam used for cooking purpose is

at temperature of 180 deg C and 3.5 kg/cm2 of pressure. Once the agro residue is cooked in

digester the material is taken out by blowing down the digester. For digester blow down,

pressurized backwater is used. Since the digester is in a pressurized state, entire content

blows out from the digester. At this moment the condensate present flashes and gets

converted to steam, which is vented to the atmosphere. Recovery of flash steam has great

potential to save overall fuel consumptions.

It is recommended to install a heat recovery tank for collecting a flash steam and the hot

water can be used in process. A complete Digester Flash stem heat recovery system

including by pass system & plate heat exchanger will be required to install. Project

implementation will lead to save about 629.40 tonnes of fuel per year.

This DPR highlights the energy, environment, economic and social benefits of use of digester

blow heat recovery system in a paper unit. Recovery of heat from digester blow heat will lead

to reduction in an equivalent amount of fuel. This heat can be recovered to generate hot water

which in turn can be used for the lye mixture tank, potcher, showers, spray showers,

iv

hydropulpers and other hot water requirement areas. Recovery and utilization of this flash

steam will lead to reduction in overall steam consumption consequently saving fuel used in

the boiler.

This bankable DPR also found eligible for subsidy scheme of MoMSME for “Technology and

Quality Upgradation Support to Micro, Small and Medium Enterprises” under “National

Manufacturing and Competitiveness Programme”. The key indicators of the DPR including the

Project cost, debt equity ratio, monetary benefit and other necessary parameters are given in

table below:

S.No Particular Unit Value

1 Project cost ` (in Lakh) 19.78

2 Fuel Saving Tonne/year 629.40

3 Monetary benefit ` (in Lakh) 17.04

4 Simple payback period years 1.16

5 NPV ` (in Lakh) 42.21

6 IRR %age 65.21

7 ROI %age 27.79

8 DSCR Ratio 3.50

9 Process down time Days 1

The projected profitability and cash flow statements indicate that the project

implementation i.e. installation of digester blow heat recovery system in a paper mill

will be financially viable and technically feasible solution for paper cluster.

v

ABOUT BEE’S SME PROGRAM

Bureau of Energy Efficiency (BEE) is implementing a BEE-SME Programme to improve the

energy performance in 28 selected SMEs clusters. Muzaffarnagar Paper Cluster is one of

them. The BEE‟s SME Programme intends to enhance the energy efficiency awareness by

funding/subsidizing need based studies in SME clusters and giving energy conservation

recommendations. For addressing the specific problems of these SMEs and enhancing

energy efficiency in the clusters, BEE will be focusing on energy efficiency, energy

conservation and technology up-gradation through studies and pilot projects in these SMEs

clusters.

Major activities in the BEE -SME program are furnished below:

Activity 1: Energy use and technology audit

The energy use technology studies would provide information on technology status, best

operating practices, gaps in skills and knowledge on energy conservation opportunities,

energy saving potential and new energy efficient technologies, etc for each of the sub sector

in SMEs.

Activity 2: Capacity building of stake holders in cluster on energy efficiency

In most of the cases SME entrepreneurs are dependent on the locally available technologies,

service providers for various reasons. To address this issue BEE has also undertaken

capacity building of local service providers and entrepreneurs/ Managers of SMEs on energy

efficiency improvement in their units as well as clusters. The local service providers will be

trained in order to be able to provide the local services in setting up of energy efficiency

projects in the clusters

Activity 3: Implementation of energy efficiency measures

To implement the technology up-gradation project in the clusters, BEE has proposed to

prepare the technology based detailed project reports (DPRs) for a minimum of five

technologies in three capacities for each technology.

Activity 4: Facilitation of innovative financing mechanisms for implementation of

energy efficiency projects

The objective of this activity is to facilitate the uptake of energy efficiency measures through

innovative financing mechanisms without creating market distortion.

Digester Blow Heat Recovery

1

1 INTRODUCTION

1.1 Brief Introduction about cluster

Muzaffarnagar is situated in Western Uttar Pradesh and is important industrial town with

paper, sugar and steel being the major products. Muzaffarnagar paper cluster has around 29

paper units. The entire paper cluster is geographically divided into three areas, namely Bhopa

Road, Jansath Road and Shamli in Muzaffarnagar district. The reason for such high

concentration of mills is easy availability of raw material in the area. Paper units are normally

having out-dated technologies characterized by inefficient energy and water management

systems. In terms of raw material usage, mills can be broadly put in two categories – waste

paper based and agro-waste based. Similarly, for finished products too, though bulk of the

mills produces only kraft paper, a few of them have started producing writing paper. These

mills are quite closely networked and successful development in one mill is very rapidly

replicated in large number of similar mills.

The total installed capacity of all the paper mills in Muzaffarnagar is approximately 542,700

MTPA. These mills are a mix of waste paper & agro. While 12 mills under the BEE SME

Program are agro-cum waste paper based, 16 of them are solely waste paper based and 1

mill which is recently established is agro based.

An important aspect of the mills here is that some of these units have a common business

operational structure due to fact that they share the same management. As such the cluster

based advantage is already being derived by most of these units. A large percentage of these

mills were set up in 80‟s and 90‟s in the small and medium sector.

The capacity utilization of all these mills ranges from 20% to 90%. Out of the total mills, 43%

are based upon both agro and waste material whereas 57% are waste paper based.

Classification can also be done based upon the product. While only 16% are involved in the

manufacture of only duplex board, a healthy 66% are into making Kraft paper only & 22%

make writing/printing paper along with small quantities of either duplex board or Kraft paper.

The paper mills in the Muzaffarnagar cluster use various types of fuels like coal, biomass, pet

coke etc. The primary fuel used in all the mills is coal and biomass. Rice husk, pith and

bagasse are the major biomass used in the cluster. In few mills wood chips are also used as

a supplementary fuel. Details of total energy consumption at Muzaffarnagar Paper cluster are

furnished in Table 1 below:


2

Table 1 Details of annual energy consumption

S. No Type of Energy Unit Value % contribution

1 Electricity TOE 15,280 14.89

2 Fuel TOE 87,365 85.11

Classification of Units

Units can be classified broadly with respect to size/capacity, raw material used and the

product.

Table 2 Classification of Units

Size Raw Material Product

1750TPA to 87500 TPA Agro and waste paper based

Waste paper based

Agro based

Kraft paper

Writing paper

Other

The paper mills in the cluster vary widely in capacity. There are mills with capacities as low as

1750 TPA and as high as 87500 TPA. The variation with respect to capacity is represented in

the chart below.

Figure 1 Classification of Units - Capacity

The paper mills in Muzaffarnagar are either based on waste paper or agro residue. While 12

mills under the BEE SME Program are agro-cum waste paper based, 16 of them are solely


3

waste paper based and 1 mill which is recently established is agro based. The variation with

respect to raw materials used is represented in the chart below.

Figure 2 Classification of Units – Raw Material

Majority of paper mills produce Kraft Paper of varying BF (Breaking Factor) and Duplex

Board. A few of them have started producing writing paper. In addition to Kraft paper and

writing paper some units also produces Printing paper, Filter paper, Gray board, Poster paper

and hard tissue paper.

Figure 3 Classification of Units - Product


4

Energy usages pattern

Energy consumption (thermal energy & electrical energy) in Paper unit depends on capacity

of unit and raw material used in the unit. The paper mills in the Muzaffarnagar cluster use

various types of fuels like coal, biomass, pet coke etc. The primary fuel used in all the mills is

coal and biomass. Rice husk, pith and bagasse are the major biomass used in the cluster. In

few mills wood chips are also used as a supplementary fuel. The details are of the same are

provided in table 3 below:

Table 3 Details of annual energy consumption

Sr. No Fuel Approx. Calorific Value of Fuels

kCal/kg

Price

1 Coal 3800 2,770 to 3800 `/MT

2 Rice Husk 3300 2,500 `/MT

3 Bagasse 2000 550 to 750 `/MT

4 Wood 3500 1200 `/MT

5 Electricity - 3.00 to 4.45 `/kWh

General production process for paper cluster

Paper is a natural product, manufactured from a natural and renewable raw material, wood.

Wood is the primary raw material for the pulp and paper industry. Wood is made from

cellulose fibres that are bound together by a material called lignin. The paper industry in

Muzaffarnagar cluster uses either the waste paper or agro residue as a source of lignin

needed for paper manufacturing process. Recovered paper has become as important a

source of new paper as wood - recovered paper now accounts for more than half of the fibres

used in the production of paper. However, fibre cannot be usefully recycled endlessly; so

there is an ongoing need to feed the supply of recovered fibre with virgin fibre in the form of

agri residue. The papermaking process can be broadly divided into three stages:

Pulping

Papermaking

Finishing


5

PULPING

Paper is made from the cellulose fibres that are present in hardwood and softwood trees. In a

pulp mill, the fibres are separated from one another into a mass of individual fibres. Whether

using wood or recovered paper, the first step is to dissolve the material into pulp. Regardless

of the type of pulping process used, the wood or recovered paper is broken down into its

component elements so that the fibres can be separated. After separation, the fibres are

washed and screened to remove any remaining fibre bundles. The pulp may then be used

directly to make unbleached papers, or bleached for white papers. The water is then pressed

out and the residue is dried. The pulping results in a mass of individual fibres being produced.

In an 'integrated paper mill' the pulp will be fed directly to a paper machine. Alternatively, it will

be dried and pressed into bales ready for use as a raw material in paper mills.

The pulp-making process

1. Timber and debarking

2. Pulp is graded and classified according to: the method of the production (e.g. chemical

or mechanical pulp); the species of tree used (e.g. softwood or hardwood); and by

level of processing (e.g. bleached or unbleached). Pulp generated from recovered

paper is similarly graded.

Making Pulp from Agro residue

In chemical pulping, the Agro Residue (Baggasse)/Wood chips are cooked in a digester with

chemicals. Cooking removes lignin, breaking up the wood into fibres. The process results in a

slurry, where fibres are loose but intact and have maintained their strength. Generally,

chemical pulp is based on one of two processes: sulphate or sulphite. Most chemical pulp is

made by the alkaline kraft or sulphate process which uses caustic soda and sodium sulphate

to "cook" the wood chips. In the unbleached stage, a dark brown, but very strong pulp results

which can be bleached to a high brightness if required. The cooking chemicals are recovered

back to the process through evaporation and burning plants. Cooked pulp is washed and

screened to achieve more uniform quality.


6

Figure 4 Agro-residue Chemical Pulping Process

The alternative method is the sulphite pulping process. This method is based on an acid

cooking liquor process, and it is best suited for specialty pulp. The sulphite mills produce

easily bleached pulps, generally with hydrogen peroxide. These pulps fulfil today's demand

for "chlorine free" products in the disposables sector and also in printing and writing papers.

The yield in both chemical processes is much lower than in the manufacture of ground wood,

as the lignin is completely dissolved and separated from the fibres. However, the waste lignin

from the sulphate and some sulphite processes, can be burnt as a fuel oil substitute. In

modern mills, recovery boiler operations and the controlled burning of bark and other residues

makes the chemical pulp mill a net energy producer which can often supply power to the grid,

or steam to local domestic heating plants.

Making pulp from recovered paper

Recycled paper is a type of paper that completely or partially consists of recycled fibres.

These fibres can have very different origins and therefore also very different characteristics

when it comes to being a component in new paper. Newsprint, tissue and paperboard are the

products primarily produced using recycled paper as raw material. Collected paper must first

be sorted into different categories. The sorting can take place either directly in the paper mill

or at special sorting stations. How the sorting takes place depends to a large extent on how

the collection of the paper takes place, which varies from country to country. In most cases

bales or loose paper waste is transported to the pulper using conveyor belts. Before printed

paper, such as office waste and newspapers, can be processed into graphical paper grades,

the ink needs to be removed. There are two main processes for de-inking waste paper -

washing and flotation.


7

In the washing process the waste paper is placed in a pulper - a huge tank that liberates the

paper fibres from the paper web by agitation with large quantities of water - and broken down

to slurry. Staples and other undesirable material are removed by using centrifugal screens,

thereby diminishing the risk of damage in the processes that follow. Most of the water

containing the dispersed ink is drained through slots or screens that allow ink particles

through. The pulp does not pass through. Adhesive particles, known as „stickies', are

removed by fine screening.

In the flotation process the waste is made into slurry and contaminants are removed. Special

surfactant chemicals are added to the slurry, which produces froth on the top of the pulp. Air

is then blown into the slurry. The ink adheres to the bubbles of air and rises to the surface. As

the bubbles reach the top, a foam layer is formed that traps the ink. The foam is removed

before the bubbles break so the ink does not go back into the pulp.

When completed, the clean, useful fibre is piped to a storage chest and consequently to the

papermaking machine, while the excess materials are skimmed off or dropped through

centrifugal force into a sludge that is then burned for fuel, otherwise used or landfilled.

Pulpwood normally arrives at the paper mill in the form of very thick sheets and recovered

paper normally arrives in the form of large, compressed bales. Both these materials have to

be broken down so that the individual fibres they contain are completely separated from each

other. This process is performed in large vessels, known as „pulpers', where the raw materials

are diluted with up to 100 times their weight of water and then subjected to violent mechanical

action using steel rotor blades.

The resulting slurry (known as papermaking stock) is then passed to holding tanks. During

this preliminary stage, auxiliary chemicals and additives may be added. The auxiliary

chemicals are usually combined with the fibrous raw materials at levels from below 1% to 2%

and can be sizing agents, which reduce ink and water penetration, and process anti-foaming

agents. Common additives consist of clay, chalk or titanium dioxide that is added to modify

the optical properties of the paper and board or as a fibre substitute. The stock is then

pumped through various types of mechanical cleaning equipment to the paper machine.

PAPER MAKING

In the pulp and papermaking industry 95% of the water used is cleaned and reused on-site.

On the paper machine, more water is added to produce a fibre suspension of as little as 1-to-

10 parts fibre to 1000 parts water and the resulting mixture is passed into a head-box which

squirts it through a thin, horizontal slit across the full machine width (typically 2 - 6 m) on to a

moving, endless wire mesh.


8

Raw material fibres and chemicals (and 99 % of water) are pumped to the head box, which

feeds the stock evenly onto the wire section. This is a woven plastic mesh conveyor belt that

can be 35 metres long and as wide as the machine. As the paper stock flows from the head

box onto the wire, water is removed on this wire section by a mixture of gravity and suction in

a process known as sheet formation where the fibres start to spread and consolidate into a

thin mat, which is almost recognizable as a layer of paper on top of the wire mesh. The paper

machine can travel at speeds of up to 2000m/minute and by the time the paper stock has

traveled half way down the wire, a high percentage of water has drained away. By the time

the thin mat of fibres has reached the end of the wire section, it has become a sheet of paper,

although very moist and of little strength. It then passes to the press section.

This consists of a number of sets of heavy cylinders through which the moist paper passes.

More moisture is squeezed out and drawn away by suction. The paper then passes to the

drier section. This consists of a large number of steam-heated drying cylinders which have a

temperature of slightly over 100°c. Synthetic drier fabrics carry the web of paper round the

cylinders until the paper is completely dry.

Part way down the bank of drying cylinders is the size press, where a solution of water and

starch can be added in order to improve the surface for printing purposes. Instead of size, a

coater can be used which is what happens when coated papers are produced. At the end of

the drying process, the paper is smoothed using an "ironing" method, which consists of hot

polished iron rollers mounted in pairs, one above the other (calenders or soft calenders). This

also helps to consolidate, polish and glaze the surface of the paper.

Still traveling at very high speeds, the paper comes off the machine ready for reeling up into

large reels (also called parent reels), which can be cut or slit into smaller ones, according to

customer requirement. These large reels are produced and changed without any interruption

to the production process.

PAPER FINISHING

The characteristics, appearance and properties of paper and board are supplemented and

enhanced by their final treatments. These may be simple processes where the reel is slit into

a number of more narrow reels or cut into sheets or more complicated processes such as

coating.

Coating improves the opacity, lightness, surface smoothness, luster and colour-absorption

ability of paper. It meets exacting quality demands regarding surface smoothness. Coating

means that a layer is applied to the paper, either directly in the papermaking machine or

separately. Varieties of coated paper range from pigmented to cast-coated. The coat consists


9

of a mix of pigments, extenders such as china clay and chalk, and binders such as starch or

latex. In addition, various chemicals are added to give the paper the desired characteristics.

For even smoother paper surface, super-calendering is required. This is done primarily for

magazines and coated papers. The paper passes through rollers, which are alternately hard

and soft. Through a combination of heat, pressure and friction, the paper acquires a high

luster surface. The paper becomes somewhat compressed during the process and is

therefore thinner than its matt finished equivalent.

General production process flow diagram for manufacturing of paper is shown in Figure.

Figure 5 Process flow diagram


10

1.2 Energy performance in existing system

1.2.1 Fuel consumption

Average fuel and electricity consumption in a typical paper unit is given in Tables 4 & 5 below:

Table 4 Annual Energy consumption in different capacities of Agro Waste based units

Parameter Unit <= 10000 TPA 10000 to 30000 TPA > 30000 TPA

Electricity1

Annual Consumption kWh 6,165,556 9,387,530 -

Rate `/kWh 4.23 3.72 -

Fuel

Annual Consumption MT 2,141 13,633 36,074

Gross Calorific Value kCal/kg 2,877 2,664 3,727

Rate `/MT 1,622 2,124 3,217

No. of Units - 2 6 4

Gross Electricity Consumption kWh 12,331,112 56,325,180 -

Gross Fuel Consumption Heat, GJ 51,561 912,290 2,250,896

Gross Energy Consumption MTOE 2,288 26,564 53,593

Total Energy Consumption MTOE 82,445

Table 5 Annual Energy consumption in different capacities of Waste Paper based units

Parameter Unit <= 10000 TPA 10000 to 30000 TPA

Electricity

Annual Consumption kWh 6,054,698 8,489,054

Rate `/kWh 4.23 3.68

Fuel

Annual Consumption MT 1,082 5,384

Gross Calorific Value kCal/kg 3,047 2,687

Rate `/MT 2,761 1,188

1 All paper units with capacity >30000 TPA have cogeneration units. As such the entire energy consumption is

represented in terms of fuel only


11

Parameter Unit <= 10000 TPA 10000 to 30000 TPA

No. of Units - 11 5

Gross Electricity Consumption kWh 66,601,683 42,445,269

Gross Fuel Consumption Heat, GJ 151,793 302,805

Gross Energy Consumption MTOE 9,341 10,859

Total Energy Consumption MTOE 20,200

1.2.2 Specific energy consumption

Specific energy consumption both electrical and thermal energy per MT of production for

different type of paper mills are furnished in Table 6 below:

Table 6 Specific energy consumption

S. No Parameter Value

1 Specific Electricity Consumption 550 to 1,080 kWh/MT

2 Specific Fuel Consumption 10.13 to 18.15 GJ/MT

Equipment wise specific energy consumption

The specific energy consumption of the equipments used in the Indian paper industry is given

in Table 7 below wherever possible.

Table 7 Equipment wise specific energy consumption

Section/Equipment Steam

(T/t of paper)

Fuel

(GJ/t of paper)

Electricity

(KWh/t of paper)

Final Energy

(GJ/t of paper)

Chipper 112-128 0.4-0.5

Digester 2.7-3.9 12.5-18.0 58-62 12.7-18.2

Evaporator 2.5-4.0 11.5-185 11.5-18.5

Washing & Screening 145-155 0.5-0.6

Bleaching 0.35-0.4 1.6-1.8 88-92 1.9-2.2

Soda Recovery 0.5-1.1 2.3-5.1 170-190 2.9-5.8

Stock Preparation 275-286 0.99-1.03

Paper Machine 3.0-4.0 13.8-18.5 465-475 15.5-20.2

Deaerator 0.8-1.2 3.7-5.5 3.7-5.5


12

Section/Equipment Steam

(T/t of paper)

Fuel

(GJ/t of paper)

Electricity

(KWh/t of paper)

Final Energy

(GJ/t of paper)

Utilities and Others 248-252 0.89-0.91

Total 10-16 46.2-73.8 1500-1700 51.6-80.0

&&

1.3 Existing technology/equipment

1.3.1 Description of existing technology



raw material after de-pithing and/or cutting. The average cycle time of each digester is

approximately 11 - 12 hours and about 10 batches per day from different digesters are blow

down from a typical unit. Generally the steam used for cooking purpose is at temperature of

180 deg C and 3.5 kg/cm2 of pressure. Once the agro residue is cooked in digester the

material is taken out by blowing down the digester. For digester blow down, pressurized

backwater is used. Since the digester is in a pressurized state, entire content blows out from

the digester. At this moment the condensate present flashes and gets converted to steam,

which is vented to the atmosphere. The schematic diagram for the present system is shown in

figure below:

Figure 6 Present Digester Blow Heat Recovery System

&&

SOURCE: IPPTA

Blow

tank

Venting

From digesters

Refiner

Cycle time : 12 hours

No. of batches: 10 per day

3.5 kg/cm2

180 deg C


13

The flash steam from digester is not clean; hence it cannot be recovered with a thermo

compressor to use for other heating purposes. However, this heat can be recovered to

generate hot water which in turn can be used for the lye mixture tank, potcher, showers, spray

showers, hydropulpers and other hot water requirement areas. At Muzaffarnagar, the average

energy charges considered for estimation of monetary savings are as follows:

Energy charges

Table 8 Energy Charges

S. No. Particular Energy Charges

1 Fuel Cost `2,707 per Tonne

2 Fuel Calorific Value 3,338 kCal/kg

3 Electricity Cost `3.91/kWh

These values have been determined on the basis of the average energy cost in the cluster.

1.3.2 Role in process



raw material after de-pithing and/or cutting. The average cycle time of each digester is

approximately 11 - 12 hours. Generally the steam used for cooking purpose is at temperature

of 180 deg C and 3.5 kg/cm2 of pressure.

1.4 Baseline establishment for existing technology

1.4.1 Design and operating parameters

The fuel savings in consumption in boiler because of heat recovery from boiler blow down,

depends on the operating efficiency level, which in turn depends on following parameters

Quantity of raw material and chemicals with water input to digester

Temperature conditions of input feed

Steam pressure and pressure inside the digester

No. of batches per day and annual operating days

Boiler operating efficiency


14

Since the energy conservation measure is about recovery of heat from digester blow heat, all

the above mentioned parameters along with the will be used to determine the savings.

1.4.2 Operating efficiency analysis

The flash steam from digester is not clean, hence it cannot be recovered with a thermo



showers, hydropulpers and other hot water requirement areas. It is recommended to install a

heat recovery tank for collecting a flash steam and the hot water can be used in process. The

proposed system is represented in the figure below.

Figure 7 Proposed Digester Blow Heat Recovery System

Detailed parameters and calculations used for estimation of energy saving are given in the

Annexure 1.

1.5 Barriers in adoption of proposed equipment

1.5.1 Technological barrier

In Muzaffarnagar cluster, overall technical understanding on paper manufacturing is good and

rapidly increasing. However, majority of the entrepreneurs in paper cluster do not have any in

depth technical expertise and knowledge on energy efficiency. They are dependent on local

technology suppliers, service companies or limited in-house technical expertise, who normally

also rely on established and commonly used technology. The lack of technical know-how has

made it difficult for the paper unit owners to identify the most effective technical measures.

Blow

tank From

digesters

Heat

recovery

tank


15

1.5.2 Financial barrier

The entrepreneur in Muzaffarnagar paper cluster typically makes investments related to

business perspective. They are comfortable investing on project expansion for improving the

production capacity as they consider it a more viable proposition as it clearly shows up in the

sales ledger. Further, the energy conservation activities not being a common practice in the

cluster makes them feel that it is not a viable proposition for investment. In view of this, and

given the limited financial strength of paper mill entrepreneurs, they would not take the risks

to invest in energy efficiency measures.

1.5.3 Skilled manpower

Skilled workers are locally available to run the paper mills in the cluster. However, there are

very few engineers employed in the mills and the production process remains traditional. This

is one of the lacunae of the Muzaffarnagar Paper Cluster.

Specialized and focused training of the local service providers on better operation and

maintenance of the equipments, importance of the energy and its use and energy

conservation measures will improve awareness among the unit owners and workforce.

Original equipment suppliers should also participate in these programs.

1.5.4 Other barrier (If any)

Many of the new technology provider‟s (especially some foreign technology leaders) have not

shown keen interest in implementation of their new innovative technologies. This appears to

be because of fear of duplication.

.


16

2. PROPOSED EQUIPMENT FOR ENERGY EFFICENCY IMPROVEMENT

2.1 Description of proposed equipment

2.1.1 Detailed of proposed equipment

Generally the steam used for cooking purpose is at temperature of 180 deg C and 3.5 kg/cm2

of pressure. Once the agro residue is cooked in digester the material is taken out by blowing

down the digester. For digester blow down, pressurized backwater is used. Since the digester

is in a pressurized state, entire content blows out from the digester. At this moment the

condensate present flashes and gets converted to steam, which is vented to the atmosphere.

The flash steam from digester is not clean; hence it cannot be recovered with a thermo



showers, hydropulpers and other hot water requirement areas. It is recommended to install a

heat recovery tank for collecting a flash steam and the hot water can be used in process.

2.1.2 Equipment/technology specification

A complete Digester Flash stem heat recovery system including by pass system & plate heat

exchanger will be required to install. Detail offer by supplier is furnished in Annexure 6.

2.1.3 Integration with existing equipment

The digester blow heat recovery system will be installed in the outlet of current digester blow

down tank in the paper mill. The installation will lead to savings in fuel. Over all energy cost of

plant will be reduced.

The following are the reasons for selection of this technology

It will reduce the total operating energy cost of the plant.

It reduces the GHG emissions

This project is also applicable for getting the carbon credit benefits.

2.1.4 Superiority over existing system

Use of this technology reduces the overall plant energy cost. It will also lead to reduction of

losses by recovering heat from vent steam resulting in reduced fuel combustion. The

installation of this measure will lead to revenue generation through fuel savings.


17

2.1.5 Source of equipment

This technology is already implemented and in operation in many paper mills in India. These

are running successfully and the unit owners had observed the savings in terms of rupees

due to savings in fuel consumption.

2.1.6 Availability of technology/equipment

Suppliers of this technology are available at local level.

2.1.7 Service providers

Details of technology service providers are shown in Annexure 5.

2.1.8 Process down time

Process down time of digester blow tank of about 1 day will be required for the installation of

the heat recovery system and its integration.

2.2 Life cycle assessment and risks analysis

Life of the equipment is about 15 years. There are as such no risks perceived in the

installation of proposed project.

2.3 Suitable unit for Implementation of proposed technology

Suitable unit for implementation of this technology are paper unit having a capacity of about

25000 TPA and above.


18

3. ECONOMIC BENEFITS FROM PROPOSED TECHNOLOGY

3.1 Technical benefit

3.1.1 Fuel saving

Project implementation will lead to save about 629.40 tonnes of fuel per year.

3.1.2 Electricity saving

The project would not lead to electricity savings in the paper unit.

3.1.3 Improvement in product quality

Product quality achieved would be same as in the present quality. It does not have any impact

on the improvement in the quality of the product.

3.1.4 Increase in production

Production will be the same as in present.

3.1.5 Reduction in raw material

Raw material consumption is same even after the implementation of proposed technology.

3.1.6 Reduction in other losses

There is no reduction in losses.

3.2 Monetary benefits

Details of energy and monetary benefit due to implementation of project are furnished in

Table 9 below:

Table 9 Energy and monetary benefit

SN Description Value

1 Present - Flash Steam Generated (Tonne per batch) 0.905

2 Enthalpy of Flash Steam (kCal/kg) 664.4

3 Heat Content of Flash Steam (kCal/Batch) 601

4 Effectiveness of heat exchanger 0.90

5 Total heat recovery through heat exchanger (kCal/Batch) 541.15

6 Fuel Saved (Tonne per batch) @ 85% boiler eff. & 3,338 kCal/kg GCV 0.191

7 Total number of batches per day 10

8 Total operating days 330


19


9 Annual fuel savings (Tonnes/year) 629.40

10 Cost of fuel (`/tonne) 2707

11 Total monetary benefit (` in lakh/year) 17.04

3.3 Social benefits

3.3.1 Improvement in working environment

Installation of blow heat recovery system in digester reduces the overall emission of pollutant

due to reduced consumption of fuel; hence improve the working environment in and near to

the plant.

3.3.2 Improvement in workers skill

Technical skills of persons will definitely be improved. As the training will be provided by

equipment suppliers which improve the technical skills of manpower required for operating of

the equipment and also the technology implementation will create awareness among the

workforce about energy efficiency and energy saving.

3.4 Environmental benefits

3.4.1 Reduction in effluent generation

There is no significant impact in effluent generation due to implementation of the project.

3.4.2 Reduction in GHG emission

Implementation of this technology will reduce the CO2 emissions. This project results in

reduction of about 423 tCO2 per year for a single unit considering that 50% of heat is from

coal and rest is from biomass. This project is also applicable to avail the carbon credit

benefits through CDM project and generates the extra income.

3.4.3 Reduction in other emissions like SOX

Significant amount of SOX will be reducing due to reduced consumption of coal.


20

4 INSTALLATION OF PROPOSED EQUIPMENT

4.1 Cost of project

4.1.1 Equipment cost

Cost of digester blow heat recovery system is ` 17.80 lakh.

4.1.2 Erection, commissioning and other misc. cost

Other cost includes cost of P&F, CST & ED, erection & commissioning cost, service tax,

interest during implementation and other misc. cost. Details of total project cost required for

implementation of proposed technology are furnished in Table 10 below:

Table 10 Details of proposed technology project cost

S.No Particular Unit Value

1 Cost of system ` (in lakh) 17.80

2 Erection & Commissioning ` (in lakh) 0.36

3 Taxes including CST, Excise duty, Service tax etc. ` (in lakh) 0.91

4 Packaging & Forwarding ` (in lakh) 0.36

5 Other misc. cost ` (in lakh) 0.35

6 Total cost ` (in lakh) 19.78

4.2 Arrangements of funds

4.2.1 Entrepreneur’s contribution

Entrepreneur will contribute 25% of the total project cost which is ` 4.94 lakh.

4.2.2 Loan amount.

The term loan is 75% of the total project cost, which is ` 14.83 lakh.

4.2.3 Terms & conditions of loan

The interest rate is considered at 10% which is SIDBI‟s rate of interest for energy efficient

projects. The loan tenure is 5 years excluding initial moratorium period is 6 months from the

date of first disbursement of loan.


21

4.3 Financial indicators

4.3.1 Cash flow analysis

Profitability and cash flow statements have been worked out for a period of 8 years. The

financials have been worked out on the basis of certain reasonable assumptions, which are

outlined below.

The project is expected to achieve monetary savings of ` 17.04 lakh per.

The Operation and Maintenance cost is estimated at 5% of cost of total project with

10% increase in every year as escalations.

Interest on term loan is estimated at 10%.

Depreciation is provided as per the rates provided in the companies act.

Considering the above mentioned assumptions, the net cash accruals starting with ` 13.14

lakh in the first year operation and gradually increases to ` 70.18 lakh at the end of eighth

year.

4.3.2 Simple payback period

The total project cost of the proposed technology is ` 19.78 lakh and monetary saving is `

17.04 lakh hence, the simple payback period works out to be 1.16 years.

4.3.3 Net Present Value (NPV)

The Net present value of the investment at 10% works out to be ` 42.21 lakh.

4.3.4 Internal rate of return (IRR)

The after tax IRR of the project works out to be 65.21%.

4.3.5 Return on investment (ROI)

The average return on investment of the project activity works out at 27.79%.

Financial indicator of proposed technology is furnished in Table 11 below:

Table 11 Financial indicators of proposed technology/equipment

S.No Particulars Unit Value

1 Simple Pay Back period Month 14

2 IRR %age 65.21

3 NPV Lakh 42.21

4 ROI %age 27.79

5 DSCR Ratio 3.50


22

4.4 Sensitivity analysis

A sensitivity analysis has been carried out to ascertain how the project financials would

behave in different situations like when there is an increase in fuel savings or decrease in fuel

savings. For the purpose of sensitive analysis, two following scenarios has been considered

Optimistic scenario (Increase in fuel savings by 5%)

Pessimistic scenario (Decrease in fuel savings by 5%)

In each scenario, other inputs are assumed as a constant. The financial indicators in each of

the above situation are indicated along with standard indicators.

Details of sensitivity analysis at different scenarios are shown in Table 12 below:

Table 12 Sensitivity analysis at different scenarios

Scenario IRR NPV ROI DSCR

Normal 65.21 42.21 27.79 3.50

5% increase in fuel saving 69.20 45.48 27.92 3.68

5% decrease in fuel saving 61.20 38.95 27.65 3.32

4.5 Procurement and implementation schedule

The project is expected to be completed in 6 weeks from the date of financial closure. The

detailed schedule of project implementation is furnished in Annexure 5.


23

Annexure

Annexure -1: Energy audit data used for baseline establishment

S.No Parameter Unit Value

1 Total bagasse Tonnes/Batch 1.9

2 Water used Tonnes/Batch 10.1

3 Total lye Tonnes/Batch 0.5

4 Total steam consumption Tonnes/Batch 1.7

5 Temperature of steam OC 180

6 Pressure of steam kg/cm2 3.5

7 Percentage of water in bagasse %age 50

8 Concentration of water in lye %age 15

9 Total quantity of water drained Tonnes/Batch 12.9

10 Total solid material output Tonnes/Batch 1.4

11 Temperature of water at blow down OC 138.19

12 Enthalpy of water at outlet temperature kCal/kg 139.07

13 Enthalpy of water at atm. pressure and temperature kCal/kg 99.32

14 Total flash steam generated Tonnes/Batch 0.905


24

Annexure -2: Detailed technology assessment report


1 Present - Flash Steam Generated (Tonne per batch) 0.905

2 Enthalpy of Flash Steam (kCal/kg) 664.4

3 Heat Content of Flash Steam (MCal/Batch) 601

4 Effectiveness of heat exchanger 0.90

5 Total heat recovery through heat exchanger (MCal/Batch) 541.15

6 Fuel Saved (Tonne per batch) @ 85% boiler eff. & 3,338 kCal/kg GCV 0.191

7 Total number of batches per day 10

8 Total operating days 330

9 Annual fuel savings (Tonnes/year) 629.40

10 Cost of fuel (`/tonne) 2707

11 Total monetary benefit (` in lakh/year) 17.04


25

Annexure -3: Detailed financial analysis Assumption

Name of the Technology Digester Blow Heat Recovery

Rated Capacity

Details Unit Value Basis

Installed Capacity

No .of Operating days Days/Annum 330

No of Operating Batches Batches/Annum 3300 Feasibility Study

Total operating hours Hrs/annum 8000 Feasibility Study

Proposed Investment

Equipment cost ` (in lakh) 17.80

Erection & commissioning % on Plant & Machinery 0.36

Taxes viz. CST, Excise duty, Service tax ` (in lakh) 0.91

Packaging & Forwarding ` (in lakh) 0.36

Other Misc. Cost ` (in lakh) 0.35

Total Investment ` (in lakh) 19.78

Financing pattern

Own Funds (Equity) ` (in lakh) 4.94

Loan Funds (Term Loan) ` (in lakh) 14.83

Loan Tenure years 5 Assumed

Moratorium Period Months 6 Assumed

Repayment Period Months 66 Assumed

Interest Rate %age 10.00% SIDBI Lending rate

Estimation of Costs

O & M Costs % on Plant & Equip 5.00 Feasibility Study

Annual Escalation %age 10.00 Feasibility Study

Estimation of Revenue

Fuel saving Tonne/annum 629.40

Cost `/Tonne 2707

St. line Depn. %age 5.28 Indian Companies Act

IT Depreciation %age 80.00 Income Tax Rules

Income Tax %age 33.99 Income Tax

Estimation of Interest on Term Loan ` (in lakh)

Years Opening Balance Repayment Closing Balance Interest

1 14.83 1.20 13.63 1.71

2 13.63 2.40 11.23 1.25

3 11.23 2.58 8.65 1.01

4 8.65 2.64 6.01 0.74

5 6.01 3.87 2.14 0.44

6 2.14 2.14 0.00 0.06

14.83


26

WDV Depreciation ` (in lakh)

Particulars / years 1 2

Plant and Machinery

Cost 19.78 3.96

Depreciation 15.82 3.16

WDV 3.96 0.79

Projected Profitability ` (in lakh)

Particulars / Years 1 2 3 4 5 6 7 8

Fuel savings 17.04 17.04 17.04 17.04 17.04 17.04 17.04 17.04

Total Revenue (A) 17.04 17.04 17.04 17.04 17.04 17.04 17.04 17.04

Expenses

O & M Expenses 0.99 1.09 1.20 1.32 1.45 1.59 1.75 1.93

Total Expenses (B) 0.99 1.09 1.20 1.32 1.45 1.59 1.75 1.93

PBDIT (A)-(B) 16.05 15.95 15.84 15.72 15.59 15.45 15.29 15.11

Interest 1.71 1.25 1.01 0.74 0.44 0.06 0.00 0.00

PBDT 14.34 14.70 14.83 14.98 15.15 15.38 15.29 15.11

Depreciation 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

PBT 13.29 13.65 13.79 13.93 14.11 14.34 14.24 14.07

Income tax 0.00 3.92 5.04 5.09 5.15 5.23 5.20 5.14

Profit after tax (PAT) 13.29 9.73 8.75 8.84 8.96 9.11 9.05 8.93

Computation of Tax ` (in lakh)


Profit before tax 13.29 13.65 13.79 13.93 14.11 14.34 14.24 14.07

Add: Book depreciation 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

Less: WDV depreciation 15.82 3.16 - - - - - -

Taxable profit (1.48) 11.53 14.83 14.98 15.15 15.38 15.29 15.11

Income Tax - 3.92 5.04 5.09 5.15 5.23 5.20 5.14

Projected Balance Sheet ` (in lakh)


Liabilities

Share Capital (D) 4.94 4.94 4.94 4.94 4.94 4.94 4.94 4.94

Reserves & Surplus (E) 13.29 23.03 31.77 40.62 49.57 58.68 67.73 76.66

Term Loans (F) 13.63 11.23 8.65 6.01 2.14 0.00 0.00 0.00

Total Liabilities (D)+(E)+(F) 31.87 39.20 45.37 51.57 56.66 63.63 72.68 81.61

Assets 1 2 3 4 5 6 7 8

Gross Fixed Assets 19.78 19.78 19.78 19.78 19.78 19.78 19.78 19.78

Less Accm. Depreciation 1.04 2.09 3.13 4.18 5.22 6.26 7.31 8.35

Net Fixed Assets 18.73 17.69 16.64 15.60 14.55 13.51 12.47 11.42

Cash & Bank Balance 13.14 21.52 28.73 35.97 42.11 50.12 60.21 70.18

TOTAL ASSETS 31.87 39.20 45.37 51.57 56.66 63.63 72.68 81.61

Net Worth 18.24 27.97 36.72 45.56 54.52 63.63 72.67 81.60

Debt Equity Ratio 2.76 2.27 1.75 1.22 0.43 0.00 0.00 0.00


27

Projected Cash Flow ` (in lakh)

Particulars / Years 0 1 2 3 4 5 6 7 8

Sources

Share Capital 4.94 - - - - - - - -

Term Loan 14.83

Profit After tax 13.29 9.73 8.75 8.84 8.96 9.11 9.05 8.93

Depreciation 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

Total Sources 19.78 14.34 10.78 9.79 9.89 10.00 10.15 10.09 9.97

Application

Capital Expenditure 19.78

Repayment Of Loan - 1.20 2.40 2.58 2.64 3.87 2.14 0.00 0.00

Total Application 19.78 1.20 2.40 2.58 2.64 3.87 2.14 0.00 0.00

Net Surplus - 13.14 8.38 7.21 7.25 6.13 8.01 10.09 9.97

Add: Opening Balance - - 13.14 21.52 28.73 35.97 42.11 50.12 60.21

Closing Balance - 13.14 21.52 28.73 35.97 42.11 50.12 60.21 70.18

IRR ` (in lakh)

Particulars / months 0 1 2 3 4 5 6 7 8

Profit after Tax 13.29 9.73 8.75 8.84 8.96 9.11 9.05 8.93

Depreciation 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

Interest on Term Loan 1.71 1.25 1.01 0.74 0.44 0.06 - -

Cash outflow (19.78) - - - - - - - -

Net Cash flow (19.78) 16.05 12.03 10.80 10.63 10.44 10.22 10.09 9.97

IRR 65.21 %

NPV 42.21

Break Even Point ` (in lakh)


Variable Expenses

Oper. & Maintenance Exp (75%) 0.74 0.82 0.90 0.99 1.09 1.19 1.31 1.45

Sub Total(G) 0.74 0.82 0.90 0.99 1.09 1.19 1.31 1.45

Fixed Expenses

Oper. & Maintenance Exp (25%) 0.25 0.27 0.30 0.33 0.36 0.40 0.44 0.48

Interest on Term Loan 1.71 1.25 1.01 0.74 0.44 0.06 0.00 0.00

Depreciation (H) 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04

Sub Total (I) 3.00 2.57 2.35 2.12 1.84 1.51 1.48 1.53

Sales (J) 17.04 17.04 17.04 17.04 17.04 17.04 17.04 17.04

Contribution (K) 16.30 16.22 16.14 16.05 15.95 15.84 15.72 15.59

Break Even Point (L= G/I) 18.42% 15.84% 14.57% 13.20% 11.56% 9.51% 9.43% 9.79%

Cash Break Even {(I)-(H)} 12.01% 9.41% 8.10% 6.69% 5.02% 2.92% 2.79% 3.09%

Break Even Sales (J)*(L) 3.14 2.70 2.48 2.25 1.97 1.62 1.61 1.67


28

Return on Investment ` (in lakh)

Particulars / Years 1 2 3 4 5 6 7 8 Total

Net Profit Before Taxes 13.29 13.65 13.79 13.93 14.11 14.34 14.24 14.07 111.42

Net Worth 18.24 27.97 36.72 45.56 54.52 63.63 72.67 81.60 400.91

27.79%

Debt Service Coverage Ratio ` (in lakh)

Particulars / Years 1 2 3 4 5 6 7 8 Total

Cash Inflow

Profit after Tax 13.29 9.73 8.75 8.84 8.96 9.11 9.05 8.93 58.68

Depreciation 1.04 1.04 1.04 1.04 1.04 1.04 1.04 1.04 6.26

Interest on Term Loan 1.71 1.25 1.01 0.74 0.44 0.06 0.00 0.00 5.22

Total (M) 16.05 12.03 10.80 10.63 10.44 10.22 10.09 9.97 70.17

DEBT

Interest on Term Loan 1.71 1.25 1.01 0.74 0.44 0.06 0.00 0.00 5.22

Repayment of Term Loan 1.20 2.40 2.58 2.64 3.87 2.14 0.00 0.00 14.83

Total (N) 2.91 3.65 3.59 3.38 4.31 2.20 0.00 0.00 20.05

5.51 3.29 3.01 3.14 2.42 4.64 0.00 0.00 3.50

Average DSCR (M/N) 3.50


29

Annexure -4: Procurement and implementation schedules

S. No. Activities Weeks

1 2 3 4 5 6

1 Procurement

2 Erection & commissioning

3 Cabling & electrical panel fitting

4 Testing and trial

5 On site operator training


30

Annexure -5: Details of technology service providers

S.No. Name of Service Provider Address Contact Person and No.

1 Forbes Marshall

PB29, Mumbai Pune Road, Pune

Mr. Raman Kumar - 020-27145595


31

Annexure–6: Quotations or Techno-commercial bids for new technology/equipment


32

India SME Technology Services Ltd DFC Building, Plot No.37-38, D-Block, Pankha Road, Institutional Area, Janakpuri, New Delhi-110058 Tel: +91-11-28525534, Fax: +91-11-28525535

Website: www.techsmall.com

Bureau of Energy Efficiency (BEE) (Ministry of Power, Government of India) 4th Floor, Sewa Bhawan, R. K. Puram, New Delhi – 110066 Ph.: +91 – 11 – 26179699 (5 Lines), Fax: +91 – 11 – 26178352

Websites: www.bee-india.nic.in, www.energymanagertraining.com

Deloitte Touche Tohmatsu India Private Ltd 7

th Floor, Building 10, Tower B,

DLF Cyber City Complex, DLF City Phase II, Gurgaon – 122002 Tel: +91-124-6702000 Fax: +91-124-6792012 Website: www.deloitte.com

http://www.bee-india.nic.in/

Documents

DETAILED PROJECT REPORT ON DIGESTER BLOW ...sameeeksha.org/pdf/dpr/Muzaffernagar_paper_cluster/...DIGESTER BLOW HEAT RECOVERY (MUZAFFARNAGAR PAPER CLUSTER) Bureau of Energy Efficiency